* 1st-quarter adj earnings $0.68/share, in line with
* Sales rise marginally to $4.33 bln vs est $4.32 bln
* Organic sales rise 6.5 pct
(Adds details on Venezuelan currency devaluation, graphic,
By Siddharth Cavale
April 25 Colgate-Palmolive Co reported a
16 percent drop in quarterly profit, hurt by a one-time charge
related to the fall in value of the Venezuelan bolivar.
The devaluation of the Venezuelan currency has hurt many
companies including Ford Motor Co, Procter & Gamble Co
and Mondelez International Inc, the maker of
Cadbury and Oreo, as it reduces the value of sales in the Latin
Colgate, which controls nearly 45 percent of the global
toothpaste market, booked an after-tax charge of $174 million
due to changes in Venezuela's foreign exchange, lower than its
February estimate of $180 million-$200 million.
The company said it expects such charges to continue,
hurting earnings by about 3 cents per share per quarter during
2014. Latin America is the company's biggest market by sales.
Procter & Gamble, the maker of Pampers diapers and Tide
detergent, said on Wednesday its quarterly earnings were hurt by
10 cents per share due to the changes in Venezuela.
Colgate's net profit fell to $388 million, or 42 cents per
share, in the quarter ended March 31, from $460 million, or 48
cents per share, a year earlier.
Excluding items, the maker of Colgate toothpaste earned 68
cents per share, in line with analysts' average estimate.
Sales rose marginally to $4.33 billion, slightly above the
average analyst estimate of $4.32 billion, according to Thomson
Organic sales, which strip out the impact of acquisitions,
divestitures and foreign exchange, increased 6.5 percent, helped
by strong sales in emerging markets. Organic sales in emerging
markets rose 10 percent in the quarter.
Mondelez said on Tuesday it would have to readjust its
balance sheet to reflect the bolivar's devaluation resulting in
a charge of $140 million in the quarter ended March 31.
Ford reported a 39 percent drop in quarterly profit on
Friday, as it had to readjust its balance sheet for currency
devaluations in Venezuela.
Colgate's shares closed at $66.43 on the New York Stock
Exchange on Thursday. The stock has risen about 12.7 percent in
the year to Thursday's close.
(Reporting by Siddharth Cavale in Bangalore and Phil Wahba in
New York; Editing by Saumyadeb Chakrabarty and Don Sebastian)